Byron Gangnes

Byron GangnesByron Gangnes is Professor of Economics at the University of Hawaii at Manoa and Director of the Hawaii Forecast Project for the University of Hawaii Economic Research Organization (UHERO ). He earned his Bachelor’s degree from the University of Puget Sound and his Doctorate from the University of Pennsylvania. He has published extensively on macroeconomic, trade and development issues for the US and Pacific Asian economies.

Papers Published in World Economics:

Why Hasn’t the US Economic Stimulus Been More Effective?

Recently questions have been raised about the effectiveness of fiscal stimulus policies, and about whether stimulus to a recessionary economy should be in the form of tax cuts or expenditure increases. This paper evaluates alternative empirical approaches to measuring the impact of fiscal policy and presents new results based on simulations of a large econometric model of the US economy.

The US economic stimulus has not been more effective because, large as it is, it has not been sufficient to offset the impact of a serious recession and because it has been phased in slowly. Multiplier simulations and other studies suggest that the recession would have been considerably more serious in the absence of the economic stimulus programme.

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